The Paisley Art Institute was constituted on 10 November 1876. Its first president was the artist William Stewart. The Institute was formally inaugurated at the Conversazione School of Art in Paisley on 22 April 1877. Founding patrons included the Polson, Clarke, Fulton and Coats families. These prominent local industrialists contributed many sculptures and paintings to start a permanent collection of art.

The Coats family paid for the building of Paisley Museum, designed by John Honeyman, and for the art and sculpture galleries which were added. These galleries were presented to the Paisley Art Institute in 1915. That same year the Institute handed over the galleries to the custody and care of the Corporation of Paisley, with certain conditions of use for their exhibitions and collection.The Institute continues to add to this collection, now housed within the permanent collection in Paisley Art Galleries.